The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-08-16

toe man who wa, at the back OF young
ives was wealthy Christopher Meyer,
,vhO had made 1rGe fortune in the
Rubber business, "a d who was supposed
t. be worth from twenty to twenty-five
millions of dollars Ii was this discovery,
by the way, that initiated against the ac-
quirement of reputation as flnancier by
young Ives. There was a suspicion that i'll
| his case, as in that of Ward and others,
some old stager had been pulling the strings
and filing him full of the wisdom that was
most useful on the street, to the joint adj
vantage of the seeming operator and of the
man behind the scenes. 1t may be remarked
incidentally that Mr. Christopher Meyer,
who lives on Fifth avenue, just above the
! Windsor Hotel, got into print about year
! ago as defendant in suit for breach Of
! promise on the verge of his marriage with
another woman. 1t was said at the time
that he got out Of the trouble by the pny-
ment of 100000.
SETTING UP THE PITS.
| As to the sum paid for this railroad stock
| there was a good deal of speculation. Ives
announced at the time that he had paid
| $40 share, the par value of the stock
being 800 share. At that time the Gin
cinnati, Hamilton and Dayton road was the
pride of the Cincinnati people, a good deal
as the New York Central is favorte stock
| hereaboutS. As soon rs Ives took hold Of it
he had his partner, George IL. Staynor,
elected President, Ives being himself made
| Vice President The former general
manager was made second vice president,
and his interest was thrown i'll with the
| Ives party, because they increased his salary
| from $1,000 a year to S25, 900. Next there
were put in as directors Christopher Meyer,
| w. G. Boone, who was connected with Ives
! firm, and who was known as "A surgeon i'll
| the Confederate army and afterward as
representative of Gillig's American Ex-
change in Europe. Then the Ives crowd
went to work and their Board of Directors
authorized an issue Of preferred stock TO an
amount not to exceed $lO,O00,0O0. The
power was given TO the Executive Commit
tee of the board to issue that stock as it
might see fit, for purposes supposed to be
for the benefit Of the road.
Ives launched out with q whoop on his
career about this time. He hal the treasury
of the road transferred from Cincinnati TO
New York, and had the house of Henry s.
Ives e. Co designated as the fiscal agents
and bankers of the road. The Cincinnati,
Hamilton and Dayton is composed of the
Cincinnati, Hamilton and Dayton proper,
the Cincinnati. Hamilton and Indianapolis,
the Cincinnati, Indianapolis and Chicago,
and the Dayton and Michigan.
THE BALTIMORE AND OHIO DEAL.
On the March 8, last the street was
startled by the report that Mr.. Robert Gar
rett, President of the Baltimore and Ohio
Railroad Company, which takes in the ex-
press and telegraph companies of the same
name, had given to a syndicate headed by
Alfred Sully an option on all these proper
ties, under which they were to be purchased
by a certain time. This was the sensation
of the day But Mr.. Sully failed to make
good the purchase.
Then ives came to the front. 1t has
seemed singular that Robert Garrett should
have dealt seriously in IA matter of such
great moment with a beardleSs financier,
who only four or five years before was a
brokers clerk, but it has been explained on
the theory that Mr. Garrett believed him to
be an entirely different Ives, and that the
negotiations had gone so far before Mr.. Gar
rett discovered his error that he could not
draw out. Young Ives was on deck all the
time. The very day that Sully announced
in a newspaper interview that he had
withdrawn from the deal, Ives went
to Baltimore and got II similar option.
It was a big scheme that the young
fellow had conceived, and if he had
been able to carry it through he would have
been on the road TO being as big a man as
Jay Gould. 1t was much bigger enter
prise than Gould had even embarked in at
the same age After several conferences by
Ives and his partner, Stayner, with Garrett
some sort of an agreement was entered into
the matter of the Baltimore and Ohio deal
Everybody was astOunded and there were
Indignation meetings in Baltimore, but Ives
trotted serenely through Wall street with
the agreement in his pocket. He issued this
preferred stock of the Cincinnati, Hamilton
and Dayton road and gave 81, 800, 900 ofitto
Garrett, together with $500, 900 in cash as a
forfeit on account of the purchase of the
Baltimore and Ohio. Then Ives began to
borrow money right and left. He hobnobbed
with Jay Gould on the latterS yacht, and
it was thought for time that the old finan
cier was in with the young one. Ives raised
money in this city, Cincinnati, Boston and
elsewhere to enable him to carry the big
deal through and secure branch lines in
order to have one trunk line from New York
to St Louis, and from there by connections
with Western roads to the Pacific ocean.
incidentally he contracted for "A controlling
interest in the Nandalia road, which had
been operated by the Pennsylvania road.
With his newly developed audacity, after
the officers of this road had resigned, he
had himself elected President and put i'll
some figureheads as directors. Next he took
into the proposed system couple of short
roads--the Dayton and Chicago and the
Dayton and lronton--which. with the con-
nections already secured, and a new road of
about sixty miles TO be built would conf
plete his line to the seaboard
BORROWING MILLIONS.
In putting through his scheme so far he
had borrowed large amount of money
nobody knew just how much--on the stock
of the Cincinnati, Hamilton and Dayton
road and this was one of tine elements that
brought about his downfall, us well as his
purpose TO b )nd the whole completed road
that was to be known as the Dayton, Fort
Wayne and Chicago, for S5,500000.
When it became known that Gould was
not in the deal, people began to call in their
loans. Margins were called for, and Ives
put them up as far as he could. 1t he could
have tide1 over until he had secured the
S., 800, 600 mortgage on the new road, all
would have been well, and instead of being
laughing-Stock to-day he would have been
n great financier But the scara spoiled it
all. Ives kept up a bold front, however
He would srnlingly say to anybody who
asked him that every thing was going love
| ly. There soon came n time, however, whom
suspicion ripened into conviction, and
when he last week went to face
! the stockholders of the Cincinnati
Hamilton and Dayton road at Cincin-
matt there was lively time, and he was
/ bluntly charged with having robbed and
banlIrupted the road. When it was seen
that there was very little doubt that Ives
would 20 to the wall the New York credi-
tors made proposition 10 him that if he
would relinquish the control of the road
| rhpN would Sipn In and piif t., f,harca SOu,o